PayPal credit checks

ena2013

Hi, 
My husband has applied for PayPal credit. This is fine but I then got a report saying that PayPal have done a hard search on my credit file. We are linked financially as we have a mortgage together but our PayPal accounts are not linked. Can anyone explain why they may have done this? Is this normal? 

[Deleted User]

It's because you're a financial associate.

ena2013

Thanks, I thought that may have been the case but never known it happen with any previous credit searches. 

Fighter1986

Lenders can opt in to or opt out of whether they search a financial associates credit file. 

xlnc99

i would make a complaint as you need to give permission for a search on your file

never heard of a company searching a financial associate

[Deleted User]

xlnc99 said:

i would make a complaint as you need to give permission for a search on your file

That's incorrect.

And I think you're in the minority if you've not heard of financial associates being searched.

xlnc99

well you learn something new everyday. In my experience from family who have these associates
whenever they applied for anything their financial associates have never been searched
furthermore, i cant believe they are allowed to give a hard search on a credit file without permission. How is that possibble?

[Deleted User]

The applicant (i.e. hubby) gives permission for his files and that of any/all associates to be searched. The associate is then also searched (if desired by the lender).

I am surprised it's a hard search on the associate and not just a soft/unrecorded search though - surely a hard search implies the associate has been applying for credit, which they haven't been (unless it's a joint app). Unless the systems are clever enough to differentiate between a search due to associate X applying for something and an actual direct search?

ena2013

I wouldn't have minded so much if it was a soft search. I don't understand why it had to be a hard search which now looks like I have applied for this myself. I have a very good credit score and no plans to be taking out any credit anytime soon so I suppose in the long term it makes no difference but its a more the principle of it.